BANKING ON MOROCCO'S RURAL WOMEN

UNCLAS SECTION 01 OF 02 CASABLANCA 000185 SIPDIS SENSITIVE STATE FOR NEA/MAG COMMERCE FOR NATHANIEL MASON E.O. 12958: N/A TAGS: ECON ETRD PGOV KWMN MO SUBJECT: BANKING ON MOROCCO'S RURAL WOMEN REF: A) CASABLANCA 163 B) 08 CASABLANCA 232 ¶1. (SBU) Summary: Official statistics do not accurately reflect the participation of rural women in Morocco's agricultural sector. As a result, women's contributions to the economy remain underreported and under-appreciated. According to the Moroccan Association for the Development of Rural Women, nearly 1.1 million women are employed in Morocco's agricultural sector, of which 400,000 are said to be working informally. Discussions with civil society and government interlocutors indicate that while legislation such as the New Family Code (the Moudawana) has altered the socio-economic climate for women in Morocco, the country's rural women continue to face enormous obstacles. Unaware of their rights, they are among Morocco's poorest, least educated, and most marginalized communities. Nevertheless, encouraged by civil society, Morocco's rural women are successfully using financial instruments such as microcredit loans and cooperatives to gain financial independence that yields social as well as economic dividends. End Summary. -------------- Morocco's Hidden Productive Force -------------- ¶2. (SBU) Living in the isolated regions surrounding the Atlas Mountains and the country's north-eastern region bordering Algeria, rural women's contributions to the agricultural sector in Morocco are underreported and as such are not fully appreciated in economic terms. According to the Moroccan Association for the Development of Rural Women (AMAPFRO),nearly 1,100,000 women are employed in Morocco's agricultural sector, of whom 400,000 are employed informally. Working up to 60 hours a week, women participate in crop production and livestock care, provide food, water, and fuel for their families, and engage in off-farm activities to diversify their families' livelihood, according to AMAPFRO. For example, rural women provide much of the labor force for the cultivation of important export crops such as citrus products. -------------- Obstacles to Progress -------------- ¶3. (SBU) The new Family Code (Moudawana) passed in 2004 instituted important changes to the rights of women, such as providing equal rights to men and women in marriage and in divorce, raising the legal age for marriage from 15 to 18, and giving widows the right to inherit their husband's land (reftels). "Despite these critical reforms, five years after its passage, the Moudawana is rarely enforced in Morocco's countryside," said Nabila Freidji, Executive Director of a leading microfinance organization, Cash One. Gender-based discrimination continues to deny rural women (who remain generally uninformed about their rights) access to and control over land and other productive resources. This in turn limits their access to credit, as commercial banks are reluctant to lend without collateral. ¶4. (SBU) It comes as no surprise, then, that the country's rural women are amongst Morocco's poorest, least educated, and most vulnerable members of society. According to official United Nations statistics, the poverty rate among rural women stands at 18 percent, compared to 7 percent among urban women. Not only are Morocco's rural women poorer than those in the urban milieu, but they are also less educated and in worse health. Bouthanya Iraqui, a Member of Parliament and former president of the Moroccan Association of Female Entrepreneurs, admits that Morocco's civil society and government have for too long neglected the precarious situation of the country's rural women. "To develop a more productive and sustainable agricultural sector, Morocco can no longer let the country's rural women lag behind," added Iraqui. ¶5. (SBU) Education presents another obstacle, as women's illiteracy limits their economic mobility. A recent report by the United Nations Development Program indicates that close to 80 percent of Morocco's rural women are illiterate. For some, the tribulations begin at birth. In Morocco's impoverished rural areas, some parents do not register their daughters with the local authorities due to the often cumbersome and costly registration process. Without a birth certificate or identity card, girls are not able to attend school, access public health services, and/or other government services. -------------- The Way Forward -------------- ¶6. (SBU) However, hope is not lost. Encouraged by civil society, Morocco's rural women are successfully using financial instruments such as microcredit loans and cooperatives to gain financial independence. In Morocco's rural communities, microcredit that combines financing with basic education is showing results in eliminating poverty and empowering women. By taking out a series of small loans, Aisha, who lives in the one of the country's poorest regions, was able to buy rice wholesale rather than retail, which is then resold to local distributors. Her profits rose. She now employs two individuals, can pay her children's school fees, and travels around town on a second-hand motorcycle. This financial independence has paid dividends well beyond the pocketbook. Many women, particularly younger rural women, have found that independent sources of income give them the confidence to question traditional views of rural women's roles both in the household and in society, and to challenge gender biases that limit their access to resources, said Mohamed Maarouf, Executive Director of one of the country's largest microcredit institution, Planet Finance. ¶7. (SBU) Collectives are the new vanguard of female empowerment in rural Morocco, where women pool together their limited resources in order to exert more leverage in the market place. This model has been used successfully among the female artisanal community in the rural outskirts of Marrakech, nearly doubling their profit margins and more importantly, providing a financial safety net. Encouraged by non-governmental organizations such as Planet Finance, these small collectives have also become a source of political leverage for Morocco's rural women. "Local politicians respect and listen to the demands of these collectives because they are a well organized voting bloc," said Iraqui. ¶8. (SBU) COMMENT: The precarious state of Morocco's rural women is a reminder of the social inequalities that continue to plague Morocco and the difficulties hindering government efforts to raise rural standards of living. Success will depend on wider access to education and credit for women. In general, empowering Morocco's rural women will not only benefit the countryside, but will go a long way in the country's efforts to create a modern, outward-looking agriculture sector, which accounts for close to 40 percent of Morocco's GDP. ORDONEZ